Accident insurance: the need for and benefits of financial security in 2025
03.06.25
8
Minutes
Katrin Straub
Managing Director at nextsure
An accident can change your life in an instant and bring significant financial burdens with it. Find out whether, and when, private accident insurance is indispensable for you and how you can protect yourself in the best possible way.
The topic in brief and concise terms
The statutory accident insurance (GUV) only covers accidents at work, at school and on the way to and from them; for the majority of leisure-time accidents, private accident insurance (PUV) is necessary.
A PUV is particularly important for self-employed people, homemakers, pensioners and children, as well as as a supplement if there is no occupational disability insurance.
Important benefit components of a PUV are a high disability sum insured with progression (at least 350 percent recommended), a good disability scale and sensible additional benefits.
Fundamental cover: Understanding statutory versus private
The statutory accident insurance (GUV) primarily covers workplace accidents and commuting accidents for employees and trainees. It also covers accidents involving children in nurseries and schools, as well as students at universities. However, more than two thirds of all accidents happen during leisure time, where the GUV often does not provide benefits. This is where private accident insurance (PUV) fills an important gap and covers the financial consequences. A PUV can also provide additional benefits if you become disabled as a result of a workplace accident. This fundamental distinction is crucial for your financial planning.
Identifying risk groups: Who benefits particularly from a PUV?
For self-employed people and freelancers, private accident insurance is often essential, as they usually do not enjoy statutory cover. Housewives, househusbands and retirees should also consider a PUV, as their cover gaps are significant. For children, a specialist children’s accident insurance policy can make sense, as the GUV covers only around 26 per cent of childhood accidents. People with dangerous hobbies, such as extreme sports enthusiasts, face an above-average accident risk of often more than 15 per cent per year. If occupational disability insurance cannot be taken out, the PUV offers an important alternative for covering the financial consequences of disability. An analysis of your personal situation reveals your individual needs.
Analysing the benefits covered: What exactly does private accident insurance pay out?
The main benefit of private accident insurance is the disability benefit, a one-off payment for permanent consequences of an accident. The amount of this payment depends on the agreed insured sum and the progression. A progression of, for example, 350 per cent can increase the benefit in the event of full disability to 3.5 times the base sum. The following table illustrates this:
At 20 per cent disability: 20 per cent of the base sum (with 350 per cent progression)
At 50 per cent disability: 100 per cent of the base sum (with 350 per cent progression)
At 100 per cent disability: 350 per cent of the base sum (with 350 per cent progression)
The schedule of benefits determines the degree of disability for individual body parts; the loss of an arm, for example, may be assessed at 70 per cent. Good tariffs often offer an improved schedule of benefits, which sets higher degrees of disability. Additional benefits such as an accident pension from 50 per cent disability, death benefits or hospital daily allowance can extend cover. Rescue costs of up to 10,000 euros are also often included. These components allow tailored cover.
Understanding cost factors: assessing PUV premiums correctly
The cost of private accident insurance varies greatly and depends on several factors. Your age and occupation play a role; higher-risk activities often lead to higher premiums. Dangerous hobbies can also increase the premium by up to 25 per cent. The sum insured you choose, for example 100,000 euros, and the progression, around 225 per cent, are key price drivers. Some insurers waive health questions, which simplifies the process but may be more expensive. Basic cover for children is often available from under ten euros per month. A careful comparison of different offers is therefore essential.
Cover specific needs: Optimise accident cover for children and seniors
Children are particularly at risk of accidents; around 74 per cent of their accidents happen during leisure activities, which are not covered by statutory insurance. A children's accident insurance policy bridges this gap and can cover important additional benefits such as rooming-in costs in hospital or the cost of cosmetic surgery of up to 1,000,000 euros. The statutory school accident pension for a ten-year-old child with a 60 per cent reduction in earning capacity is often only around 500 euros a month. Senior citizens also benefit from a PUV, as the risk of accidents increases with age and recovery processes often take longer. Some tariffs offer special assistance services for seniors, such as transport services or domestic help. Tailoring cover to the relevant stage of life is crucial.
Review contract details: keep an eye on clauses and exclusions
The devil is often in the detail of the insurance terms and conditions. An accident is typically defined as an involuntary event that suddenly acts on the body from the outside. Look out for inclusion of self-initiated movements, for example a ligament tear during sport without external influence. The alcohol clause regulates benefits for accidents under the influence of alcohol; good policies still pay out even at higher blood alcohol levels. The involvement of pre-existing conditions can lead to benefit reductions if they have contributed at least 25 per cent to the loss. Deadlines are also important: claims often have to be medically certified and asserted within 15 to 18 months. Our expert tip: choose policies with a high progression of at least 350 per cent and a disability scale that offers market-standard or better values. A careful review before taking out cover will protect you from nasty surprises.
Contributions to private accident insurance can, under certain conditions, be claimed for tax purposes. They count as other pension expenses and are entered in the pension expenses section of the tax return (lines 46-50). For employees and civil servants, an annual maximum deductible amount for pension expenses of €1,900 applies; for the self-employed, €2,800. This maximum amount is often already used up by health and long-term care insurance contributions. If the policy covers occupational risks, the contributions can be claimed in part as work-related expenses (employees) or business expenses (self-employed). The disability benefit from private accident insurance is generally tax-free. An accident annuity, on the other hand, must be taxed on the taxable portion. Our expert tip: Keep proof of contributions for at least ten years, as the tax office may request it. A thorough review of your tax situation may be worthwhile.
Case law in focus: Recent rulings and their impact
Case law on accident insurance is continually evolving and often has a direct impact on policyholders. Courts decide, for example, on the interpretation of the concept of an accident, such as in cases of injuries caused by self-initiated movement or psychological consequences of an accident. A judgment by the Dresden Higher Regional Court made it clear that the date on which the invalidity period expires is decisive for the initial assessment of disability. The Hamm Higher Regional Court ruled on how the degree of disability is assessed in cases of multiple injuries to a single part of the body. The Federal Court of Justice (BGH) has ruled that medical treatment for entitlement to daily allowance also includes prescribed measures, not just visits to the doctor themselves. Our expert tip: if anything is unclear or there is a dispute with the insurer, consulting a specialist lawyer for insurance law may be sensible, as they know the current legal position. Stay informed so that you can enforce your claims effectively.
Request an individual risk analysis now: have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
DGUV provides a comprehensive overview of statutory accident insurance in Germany.
The Federal Ministry of Labour and Social Affairs provides basic information on statutory accident insurance.
The DGUV publishes current figures and facts on statutory accident insurance.
The association Die Versicherer provides information on relevant aspects of accident insurance.
The Consumer Advice Centre offers an assessment of the usefulness of private accident insurance.
The Federal Institute for Occupational Safety and Health (BAuA) provides important figures, data and facts on occupational safety.
The Federal Ministry of Labour and Social Affairs provides detailed statistics on statutory accident insurance.
Gesetze im Internet provides the full legal text of Book Seven of the Social Code (SGB VII), which governs statutory accident insurance.
FAQ
Do I need accident insurance even if I have occupational disability insurance?
Accident insurance can also be a sensible addition alongside occupational disability insurance (BU). The BU pays a pension in the event of occupational disability caused by illness or accident. Accident insurance pays a lump-sum benefit in the event of disability caused by an accident, regardless of ability to work. It can help cover one-off costs (e.g. conversion work).
What is meant by the body-part schedule?
The disability scale is a table in the insurance contract that determines the level of disability (as a percentage) recognised in the event of loss or complete loss of function of certain body parts or sense organs. For example, the loss of an arm may be assessed at 70 per cent.
What does progression mean in accident insurance?
Progression means that the insurance benefit increases disproportionately in the case of severe levels of disability. With progression of 350 per cent, you receive 3.5 times the agreed basic sum insured in the event of total disability (100 per cent degree of disability).
Are contributions to accident insurance tax deductible?
Yes, contributions to private accident insurance can be entered in the tax return as other pension expenses, up to the statutory maximum amounts (EUR 1,900 for employees, EUR 2,800 for self-employed persons). However, these maximum amounts are often already used up by health and long-term care insurance contributions.
Does accident insurance also provide cover abroad?
Personal accident insurance usually provides worldwide cover, around the clock. This applies both to accidents at home and when travelling abroad, unless otherwise stipulated in the policy.
What deadlines do I need to observe after an accident?
After an accident, you usually need to have your entitlement to disability benefits medically assessed and asserted with the insurer within a specified period of time (often 15 to 18 months). The exact deadlines are set out in your insurance contract.
